Looking to score the best deal on auto insurance? Taking the time to research deals, discounts and promotions offered by reputable providers can save you hundreds (maybe even thousands) of dollars each year. It’s important to evaluate different auto insurance options to ensure you’re getting the coverage you need at a fair price.
Secret Ways To Save Big On Auto Insurance
1. Shop Around Regularly
The easiest way to save on auto insurance is simply to compare rates. Insurers often change their pricing, and the cheapest option last year may not be the most affordable now. Check rates from at least three different companies before your renewal date. Be sure to compare not only the premiums but also the coverage options to ensure you’re getting the best deal without skimping on necessary protection.
2. Bundle Your Insurance Policies
If you already have home, renters, or life insurance, bundling these policies with the same company can lead to significant discounts. Insurers love rewarding customers who bring multiple types of business their way. Bundling not only saves you money but also simplifies your insurance management by combining everything into one provider.
3. Take Advantage of Discounts
Many people miss out on available discounts simply because they don’t ask.
Potential Discounts
- Good driver discounts for maintaining a clean driving record.
- Good student discounts for young drivers maintaining a high GPA.
- Low-mileage discounts if you drive less than the average miles per year.
- Safe vehicle discounts for cars equipped with safety features like anti-lock brakes, airbags, or electronic stability control.
Even small savings from these discounts can add up over time.
4. Increase Your Deductible
One of the fastest ways to reduce your premium is by raising your deductible—the amount you pay out of pocket in the event of a claim. While this can lower your monthly payment, be sure you have enough savings to cover the higher deductible in case of an accident. It’s a great strategy if you rarely file claims and have confidence in your driving abilities.
5. Maintain a Good Credit Score
Many insurers use your credit score to determine your insurance rates. A strong credit score signals to insurance companies that you’re responsible, making you a lower risk to insure. Paying bills on time, keeping balances low, and avoiding unnecessary credit inquiries can help boost your score and lower your premiums.
6. Drive a Safe, Low-Risk Vehicle
Your car’s make and model play a big role in determining your auto insurance rate. Sports cars, luxury vehicles, and models with high theft rates often come with higher premiums. Consider driving a vehicle with good safety ratings and low repair costs to score a better deal on insurance. Before purchasing a new car, research how it may affect your rates.
7. Limit Coverage on Older Vehicles
If you have an older car with low resale value, it might not make sense to carry comprehensive or collision coverage. These coverages pay for repairs after an accident, but if your car isn’t worth much, the repair costs might exceed the vehicle’s value. In that case, you may be better off dropping these coverages and saving money on your monthly premium.
8. Consider Usage-Based Insurance
If you’re a low-mileage driver or have safe driving habits, usage-based insurance (UBI) might be for you. This type of insurance tracks your driving behavior through a smartphone app or a device installed in your vehicle. If you drive safely and within the insurer’s guidelines, you could be rewarded with significant savings. This is a great option for those who don’t drive often or mainly stick to short, local trips.
9. Ask About Group Insurance Rates
Many organizations, alumni associations, and employers offer group discounts on auto insurance. If you belong to a professional organization, check if they have any partnerships with insurers that offer discounted rates. These group rates can be significantly lower than individual ones.
10. Pay Your Premium in Full
Many insurance companies offer a discount if you pay your entire premium upfront instead of in monthly installments. If you can afford to pay in full, it’s a quick way to reduce your overall insurance cost.
Top Auto Insurance Providers
While saving on auto insurance is crucial, choosing a reliable provider is equally important. Here are some of the top auto insurance companies known for their affordability, customer service, and coverage options.
1. Geico
Geico is known for its budget-friendly rates and wide range of discounts. Whether you’re a good driver, student, or part of a military family, Geico often has one of the most competitive rates available. They also offer excellent digital tools for easy policy management and claim filing.
2. State Farm
State Farm is the largest auto insurer in the U.S. and offers competitive rates combined with exceptional customer service. They have a wide array of agents across the country, making it easy to get personal assistance. State Farm also provides discounts for safe drivers, good students, and those bundling home and auto insurance.
3. Progressive
Progressive is famous for its “Name Your Price” tool, allowing customers to find coverage that fits their budget. Their usage-based insurance program, Snapshot, can reward safe drivers with additional discounts. Progressive is a top choice for drivers looking for flexible coverage and innovative ways to save.
4. Allstate
Allstate stands out for its wide range of policy options and its “Drivewise” program, which tracks driving habits to offer discounts for safe driving. Additionally, they offer accident forgiveness and new car replacement features, making them a great option for those looking for added protection.
5. USAA
If you or your family have served in the military, USAA offers some of the best rates and customer service in the auto insurance industry. They consistently rank high in customer satisfaction and offer extensive discounts, including savings for safe driving and bundling policies.
6. Nationwide
Nationwide offers a variety of discounts, including for accident-free driving, having anti-theft devices, and bundling your home and auto insurance. They also offer a Vanishing Deductible program, which rewards you for each year of safe driving by lowering your deductible.
Start Saving Today
Finding ways to save on auto insurance doesn’t have to be difficult. By being proactive, asking the right questions, and taking advantage of hidden savings opportunities, you can secure a lower premium without compromising on coverage. Remember, the best strategy is to regularly review your policy, stay informed, and be open to switching insurers if it benefits your wallet.